October 01, 2014

Always be truthful in the Bankruptcy Court

Because he failed to tell the truth in his bankruptcy proceedings, a debtor named Jay Freese of Montour, Iowa, will now have a long time to rethink his decision to deceive the US Bankruptcy Court, as he departs to serve time in federal prison. Mr. Freese filed personal bankruptcy in 2009. However, in his case, he failed to disclose that he owned both a skid loader and a tractor, even when questioned under oath by the Bankruptcy Judge. Mr. Freese claimed that he had sold both items to another person. He later pled guilty to one count of concealing assets in a bankruptcy. He was recently sentenced to 18 months in prison and given a $5,000.00 fine.

The moral of this tale is “do not lie to any judge,” especially a Federal Bankruptcy Court judge. If you are contemplating bankruptcy or any other legal proceeding, or being asked to testify in a court proceeding, first contact experienced legal counsel.